BU387 Chapter Notes - Chapter 4: Philippe Gaubert, Society Of Cable Telecommunications Engineers, Weighted Arithmetic Mean
Document Summary
The balance sheet aims to capture the inancing and invesing aciviies. The income statement aims to capture the operaing and performance-related aciviies. The cash low statement looks at the interrelaionship between the aciviies. The income statement is used by investors and creditors to: evaluate the enterprise"s past performance and proitability. By examining revenues, expenses, gains, and losses, users can see how the company performed and compare the company"s performance with its compeitors: provide a basis for predicing future performance. Informaion about past performance can be used to determine important trends: help assess the risk or uncertainty of achieving future cash lows. Informaion on the various components of income highlights the relaionships among them and can be used to assess the risk of not achieving a paricular level of cash lows in the future. The income statement provides feedback and predicive value, which help stakeholders understand the business.
